Item 3. Legal Proceedings
Item
3. Legal Proceedings.
On
June 22, 2021, Thomas Seifert’s employment as the Company’s Chief Financial Officer was terminated for cause. Mr. Seifert
asserts that the termination was not for cause and that he is owed all compensation payable under his employment agreement executed in
June 2021. The Company’s position is that Mr. Seifert is not owed any additional consideration or compensation relating to his
prior service with the Company, or arising under any employment agreement. Further, the Company asserts that Mr. Seifert engaged in misconduct
during his tenure as the Company’s CFO. Mr. Seifert’s employment as Chief Financial Officer has resulted in two lawsuits.
The
Company initiated litigation against Mr. Seifert on June 28, 2021 in the Eleventh Judicial Circuit Court in and for Miami-Dade County.
The parties to the suit are NextPlat Corp. and Thomas Seifert. The matter was designated Case No.: 2021-15243 CA 01. The Company’s
case against Mr. Seifert was removed to the United States District Court for the Southern District of Florida, where it is
pending under Case No.: 1:21-cv-22436-DPG (the “NextPlat Action). The Company seeks damages under several legal theories,
including breach of fiduciary duty, breach of an employment agreement, fraud in the inducement, fraudulent misrepresentation, and constructive
fraud. The Company does not expect to obtain substantial monetary relief in its litigation against Mr. Seifert.
On
July 2, 2021, Mr. Seifert filed suit against the Company in the United States District Court for the Southern District of Florida. The
parties to the suit are Thomas Seifert, NextPlat Corp. and Charles Fernandez, NextPlat’s Chairman and Chief Executive Officer.
The matter is designated Case No.: 1:21-cv-22410-MGC (the “Seifert Action”). Mr. Seifert seeks damages under several
legal theories, including breach of an employment agreement, retaliatory discharge, libel per se , and negligent misrepresentation.
The Company believes it has adequate defenses to defeat Mr. Seifert’s claims.
On
February 17, 2022, the Seifert Action was transferred to United States Disctict Court Judge Darrin P. Gayles, the presiding judge over
the NextPlat Action. The Seifert Action was redesignated Case No. 21-cv-22410-GAYLES. Both matters are in the discovery phase. Neither
case has been set for trial.
Item
4. Mine Safety Disclosures.
Not
applicable.
36
PART
II
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.